Skills-based hiring was supposed to be the great equalizer—shifting the focus from degrees to real-world abilities, unlocking hidden talent, and making recruiting more efficient. But here’s the kicker: despite having tools to assess workforce readiness, many companies aren’t using them effectively. The result? A hiring paradox. Employers can’t find entry-level candidates who meet their expectations, and job seekers struggle to prove they’ve got what it takes, especially when it comes to more than just technical know-how.

The “Skills Gap” Isn’t Actually About Skills (At Least Not the Traditional Kind)

It’s not just about knowing how to code, write a report, or use a CRM. Employers are increasingly frustrated by new hires who lack essential durable skills—communication, teamwork, resilience, and professionalism. According to Intelligent.com, six in ten employers have either fired or plan to fire recent Gen Z hires due to these shortcomings. The disconnect is real: young professionals think they’re job-ready, but hiring managers see glaring gaps in workplace fundamentals.

Degrees once served as shorthand for workforce preparedness, but even graduates from top schools are leaving campus without the capabilities needed to thrive on the job. Employers report that today’s job seekers struggle with basic yet crucial skills: focusing deeply, reading at length, juggling multiple projects, and even showing up on time.

So Where Do We Start?

Let’s talk about reading. Research suggests that reading fiction boosts empathy, which is a foundational quality that allows one to work well on teams, manage others, and even communicate effectively. But students today struggle to engage with long-form content, impacting their ability to absorb complex ideas, character development, and narrative (which is where empathy-building comes from). Even at Ivy League universities, professors report students who technically can read—but can’t finish a book due to a lack of “reading stamina.” If reading an entire novel feels like running a marathon, what does that mean for processing dense workplace documents? And this doesn’t even touch the impact on building emotional capacity that comes from close reading of literature.

And then there’s math—an unsung hero of job readiness. Studies by The Center for Economic and Social Research report that “more numerate individuals had higher incomes; for every one point higher on the eight-item numeracy test, individuals reported $4,062 more in annual income…” Even roles that don’t scream “math-heavy”—like social media management—require number sense, whether it’s budgeting for ad spend, analyzing audience reach, or resizing images for different platforms. The growing push for “math fluency” and numeracy highlights the reality: math isn’t just about crunching numbers; it’s about problem-solving, data analysis, and making informed decisions.

Reading and math aren’t just academic subjects—they are the foundation of nearly every skill employers value. Critical thinking, problem-solving, and even collaboration hinge on the ability to process and analyze information effectively. Without literacy and numeracy, broader workplace skills don’t have a foundation. That’s where well-designed assessment tools that evaluate both foundational skills and applied workplace competencies can provide a fuller picture of readiness, ensuring that candidates don’t just meet technical qualifications but are truly prepared for the demands of the job.

The New Generation of Assessments Might be the Key, but Only If They Are Used

Company-specific skills assessments are a game-changer—if companies actually use them. Tools like ACT WorkKeysPathways2Careers, and DRC Tabe’s Workforce Portal already exist, offering deep insights into candidates’ strengths and career-aligned capabilities. Other third-party platforms provide robust assessments, but many hiring managers simply aren’t trained to make sense of the data (there’s math fluency again!) or integrate it into their hiring workflows.

Here’s where things break down:

  • Companies Aren’t Fully Onboard: Despite the clear advantages, many HR teams still default to traditional resumes and degree requirements rather than tapping into structured skills assessments.
  • Data Overload; Little Action: When companies do implement assessments, HR professionals often don’t know how to interpret or apply the results effectively.
  • Tech Hasn’t Caught Up: Many applicant tracking systems (ATS) aren’t built to process the rich data that skills assessments generate, making it harder to integrate into hiring decisions.
The Fix: Making Workforce Readiness Data Work for Everyone

For skills-based hiring to live up to its promise, companies need to stop underutilizing the tools already at their disposal. Here are a few steps in the right direction:

  1. Reevaluate Job Descriptions: Align job descriptions with the skills needed and consider how these skills can be acquired. Often, these skills can be cultivated outside of college, so consider whether a degree is necessary.
  2. Train HR Teams to Use Assessment Data: A skills-based approach is only as good as the people interpreting the results. Companies should invest in training HR professionals to understand and apply assessment data in hiring decisions.
  3. Upgrade Recruiting Platforms: Applicant tracking systems should evolve to support skills-based hiring, ensuring that assessments and meaningful credentials seamlessly feed into decision-making processes.
  4. Look Beyond the Résumé: Employers need to assess not just technical competencies but also problem-solving, self-management, reading stamina, and numeracy—the skills that drive long-term success.
Final Thoughts – We Need to Stitch Education and Hiring Practices Together

First, skills-based hiring isn’t just about filling jobs—it’s about finding the right talent, ensuring they’re truly prepared, and setting them up for long-term success. The benefits are clear: businesses get employees who are better suited for their roles, retention rates improve (turnover is expensive!), and productivity soars. But it requires a mindset shift. Companies must recognize that workforce readiness goes beyond a degree or a polished resume—it’s about real capabilities that impact day-to-day performance. The tools to measure these competencies are already here, waiting to be leveraged.

Second, preparing students for workforce success starts long before they apply for their first job. By fostering a strong foundation in reading and math early on, we can equip them with the skills they need to navigate the modern, quickly changing workplace with confidence. When students understand where they stand, what they need to improve, and how to build a path forward, they’re more likely to develop the critical thinking, problem-solving, and communication skills employers seek. Without literacy and numeracy, life skills remain abstract concepts rather than practical abilities. The good news is that the tools to measure and foster growth in reading and math are solid and widely used. The question is, can we evolve both education and hiring practices, and stitch them together, to prepare the workforce of tomorrow?

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